Zacks Research Downgrades Arc Resources (OTCMKTS:AETUF) to Strong Sell

Key Points

• Zacks Research downgraded Arc Resources from “hold” to “strong sell,” adding to a wave of negative analyst sentiment on the stock.
• Several other firms recently cut or lowered their ratings, and the overall analyst consensus now stands at “Hold” with two Buy, nine Hold, and two Sell ratings.
• Arc Resources beat quarterly EPS estimates at $0.75 versus $0.50 expected, but revenue of $1.09 billion came in below forecasts of $1.14 billion.

Arc Resources (OTCMKTS:AETUF - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

A number of other research analysts have also commented on the company. Canaccord Genuity Group lowered Arc Resources from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 28th. Scotiabank reissued a "sector perform" rating on shares of Arc Resources in a research note on Wednesday, April 29th. Jefferies Financial Group cut shares of Arc Resources from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, April 29th. Capital One Financial downgraded Arc Resources from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, TD Securities lowered Arc Resources from a "buy" rating to a "sell" rating in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Arc Resources has a consensus rating of "Hold".

Arc Resources Trading Up 0.6%

Shares of AETUF stock opened at $21.96 on Tuesday. Arc Resources has a 12 month low of $15.50 and a 12 month high of $23.79. The company has a quick ratio of 0.69, a current ratio of 0.70 and a debt-to-equity ratio of 0.29. The business's 50 day moving average is $22.29 and its two-hundred day moving average is $20.03. The company has a market cap of $12.44 billion, a PE ratio of 12.00 and a beta of 0.26.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The energy company reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.25. Arc Resources had a net margin of 22.77% and a return on equity of 17.70%. The company had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.14 billion. Equities analysts predict that Arc Resources will post 1.78 EPS for the current year.

Arc Resources Company Profile

Arc Resources Ltd., trading on the OTC Markets under the ticker AETUF, is a Canadian energy company primarily engaged in the exploration, development and production of natural gas, condensate and natural gas liquids. Headquartered in Calgary, Alberta, the company’s core operations are concentrated in the Montney formation, a premier resource play extending across northeastern British Columbia and northwestern Alberta. Arc’s portfolio emphasizes liquids-rich gas production supported by proprietary midstream infrastructure, including gas processing facilities, pipelines and water management systems.

Since its formation in the mid-1990s as Arc Energy Trust and its conversion to a corporation in 2015, Arc Resources has pursued a disciplined growth strategy focused on operational efficiency, cost control and sustainable development.

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